Let’s get started with a nice and simple range play on Cable. Pound bears are having trouble dragging the pair below the 1.2400, which isn’t surprising since the psychological handle has been serving as area of interest since early February. What makes the setup even more interesting is that stochastic is chillin’ like a villain on the oversold territory. Will these factors lead to a bounce for the pound? Time to bust out your range trading strategies, brothas!
Here’s one for the trend warriors out there! AUD/JPY is currently finding support at the 86.00 major psychological handle, which is right smack at a rising channel support near the 200 SMA on the 4-hour time frame. Oh, and look at sweet divergence poppin’ up on the chart! Buying at current levels could get you a decent reward-to-risk ratio especially if you aim for the previous highs around the 88.00 handle. Don’t even think about using tight stops though. You playas know that yen crosses like these tend to see more volatility than the majors!
Forex Chart Settings:
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.